Why borrowers should post margin for lenders on the NSCC SFT CCP

Across multiple calculators and analyses, we find the same conclusion that banks and brokers should post margin for beneficial owners lending securities on the DTCC NSCC Securities Finance Transaction (SFT) central counterparty (CCP) through an agent lender. The math works across RWA, Leverage Ratio, operations and daily accrual accounting. While this may be an unpopular opinion and we’ve already heard doubts, we make the argument that for the benefit of the entire industry, borrowers posting margin should be standard practice.
This content requires a Finadium subscription. Articles with an unlocked symbol can be accessed with free registration. Log in or create a free account by signing up here..

Related Posts

Previous Post
Sygnum taps Fidelity MMF for moving $50mn “proof of reserves” on-chain
Next Post
BIS and European central banks use genAI for climate risk analysis

Fill out this field
Fill out this field
Please enter a valid email address.


Reset password

Create an account